GM's pain hits retirees

GM's pain hits retirees -- baltimoresun.com: Yesterday's announcement has left retirees on fixed incomes like Miller wondering how they will cope when they lose their benefits in January.

GM said it will increase pension payments by $300 a month with money from its overfunded pension plan to help compensate. But nobody knows if that will pay for everything.

"They've been cutting for years, so I sort of knew this was going to happen someday," Miller said. "But I was hoping it would take longer. We're probably going to have to cut back on the amount of insurance coverage we have."

Already, Miller is wondering whether he will be able to afford the knee surgery he had planned for later this year.

Currently, GM pays retirees on Medicare $76.20 a month to help pay for supplemental coverage and also provides secondary coverage through CareFirst BlueCross BlueShield in Maryland. How much the company contributes depends on the plan a retiree chooses. Combined, the coverage helps pay for additional medical, dental, vision, prescription drug and extended care coverage.

Supplemental Medicare coverage can cost $800 to $3,000 a year, according to the Baltimore County Department of Aging. The CareFirst "Medi Gap" plans range in cost from $55 to $155 per month for people ages 65 to 69. The premiums increase with age.

Retirees will have to transfer their Medicare benefits in 63 days or risk not being covered for pre-existing conditions, said Arnold Eppel of the Baltimore County Department of Aging.